Ace the PTBC California Law Exam 2026 – Unlock Your PT Future with Fun Prep!

When a shareholder in a PT corporation passes away, their shares become part of their estate. The capital stock is then either returned to the corporation or sold to the remaining shareholders, depending on the terms outlined in the shareholder's will or the corporation's bylaws. Option A is incorrect because the shares do not automatically transfer to the shareholder's next of kin. Option C is incorrect because there is no requirement for the capital stock to be donated to a PT charity. Option D is incorrect because the shares still exist but have changed ownership.